Data on ratepayers’ real-time energy use and real-time energy prices could, theoretically, drive a highly efficient and responsive energy consumption landscape.Under those conditions, people would constantly adjust their energy use, cut back when regional demand and prices are high and do energy-intensive tasks when overall demand and prices are low.
But in reality, during their busy lives people are unlikely to constantly check an energy portal website or notifications on their phone and adjust their thermostats or operate appliances in response.
That’s where many see an important role for third-party actors who essentially manage ratepayers’ energy use for them — adjusting their thermostats and other smart appliances in real time and otherwise helping people make changes that will reduce their usage during peak demand times.
But to do this, third-party companies need access to customers’ energy use data in real-time. Only recently have utilities been able to provide customers with detailed data on their own energy use, thanks to smart meters and other smart grid-related technology. But utilities typically do not provide this data to third parties, in part because of privacy and security concerns.
In addition to managing devices and appliances, the U.S. Department of Energy says sharing energy-use data with third parties could help with sizing and financing rooftop solar panels and help contractors more easily verify home energy savings. Large users can already sell their demand response into energy marketplaces, but residential users would typically be too small to participate. Third parties could aggregate the demand response (strategic energy use reduction) of numerous residents and sell it into the marketplace, then channel the financial benefits — minus their own cut — back to residents.